Some good thoughts on our 'RV investment'

ChanW

Here's an interesting video talking about the 'realities' of buying/owning an RV. (Not really as negative as it's name suggests)

I especially appreciate his points about 'depreciation', and those factory defect repairs, or 'factory fix time'. These were realities that took some time to get used to, for us!

And Little Guy/NuCamp have always been amazing at correcting for that 'factory defect' reality.

https://youtu.be/4DUz0OO1T2g

jkjenn

ChanW said:

I especially appreciate his points about 'depreciation', and those factory defect repairs, or 'factory fix time'. These were realities that took some time to get used to, for us!

And Little Guy/NuCamp have always been amazing at correcting for that 'factory defect' reality.

https://youtu.be/4DUz0OO1T2g

I agree 100%. You assume an RV is like everything else you buy...mass produced and a problem should never happen. I was surprised to learn that nüCamp was the only RV manufacturer that uses precision CNC machinery. 

Gone with the Wynns said in a video that they actually like to buy a 1-2 year old RV to avoid the factory fix issues.

That said, I love the nüCamp is doing things like leak testing every new trailer with their spray area to minimize that factory repair time and the amazing support you get when their is a problem. I have never sensed any reluctance to make things right for my trailer.

ScottG

Good video. Another point he doesn't specifically mention with regard to financing is that with long term loans your early payments are going mostly to interest rather than principle. Throw in depreciation and you may end up "in the bucket"--a term typically applied to real estate when you owe more on a loan than the market value of the property.

I've never had much misconception that RV's are investments. It's a flimsy house mounted to a vehicle, combining the worst of both (maintenance and repairs with steep depreciation).

It's a toy. But I do love my toy!  :-)

Sharon_is_SAM

@jkjenn, we saw that precision machinery in action at the factory when on tour at the rally.  They use it to cut the cabinetry amongst other things.

ChanW

That's a great use for CNC work, mass production of 'hand made' cabinetry.

I had a real hard time accepting CNC as a 'tool', when a craftsman at a high end furniture show admitted to using it for his work.

What do you think, @Verna?

(Or is this too political?) (I'll wait for the wand) 

rfuss928

ChanW said:

That's a great use for CNC work, mass production of 'hand made' cabinetry.

I had a real hard time accepting CNC as a 'tool', when a craftsman at a high end furniture show admitted to using it for his work.

Many different power tools are used to cut and shape the raw materials.  The best tools do not make a craftsman or create craftsmanship!

Photomom

In my career I worked with Kaizen (continuous improvement), ISO9001, and Six Sigma quality processes. Toyota is a master of those approaches and my employer spent a lot of money learning how they do it. One key is that Toyota builds LOTS of cars, and they are all built exactly the same with very few, well controlled options. Errors are not only caught and fixed immediately, but the process that allowed the error to be made in the first place is also fixed.

Based on my reading about the RV industry in general, those approaches are just not followed. I do believe NuCamp is an exception, along with a few others in the high end market like Airstream and Oliver.

Photomom

As for the financial aspects, it is mind boggling that the guy in the video would buy something that expensive without understanding depreciation or interest cost. Has he never financed a car, or mortgaged a house?

jkjenn

Photomom said:

As for the financial aspects, it is mind boggling that the guy in the video would buy something that expensive without understanding depreciation or interest cost. Has he never financed a car, or mortgaged a house?

Really good point!

ScottG

Photomom said:

As for the financial aspects, it is mind boggling that the guy in the video would buy something that expensive without understanding depreciation or interest cost. Has he never financed a car, or mortgaged a house?

As for the financing, he more or less said it; as a typical "payment buyer" he focused on the monthly expense rather than the total cost. I suspect he not as unusual as you may think...

Sharon_is_SAM

He is very, not unusual.  I am no longer shocked at the impulsiveness I have virtually and actually witnessed, frequently followed by a quick sale.  I had a friend who on a whim picked up a new, 28 foot MH without any preparation and quickly parlayed that into a 38 foot diesel pusher which after less than a year is sitting on a dealer’s lot waiting to sell at a significant loss.  Not surprised anymore.